Phillips 66 charts additional path to Bayway

OREANDA-NEWS. September 11, 2015.  Phillips 66 expects to take Bakken crude shipped by pipeline to the Texas coast and move it by ship, either to its own facilities or abroad.

Shipments by pipeline out of the midcontinent to the company's newly acquired terminal in Beaumont, Texas, and on Jones Act vessels to its 250,000 b/d Bayway refinery in Linden, New Jersey, will be competitive with rail, chief executive Greg Garland said yesterday at Barclays CEO Energy Conference.

The US independent refiner has no grudge against rail deliveries — Phillips 66 has moved 16mn bl of crude by rail to the east coast refinery through an offloading facility that came online late last year, Garland said. But the combination of a 25pc interest in 450,000 b/d of pipeline capacity connecting North Dakota fields to the Texas coast and the Beaumont terminal will offer a new, competitive path for midcontinent crude. The Dakota Access Pipeline and Energy Transfer Partners Crude Oil pipelines would come online late next year.

The company would also want to participate in any infrastructure opportunities should the US end a ban on exports of most domestic crudes, Garland said. Beaumont and the pipeline connections were considered export options in addition to an alternative supply route for their own refineries, he said.

"We would be very interested in doing that, too," Garland said.